Today I want to take a look at the transaction fees for Bitcoin, how they’ve decreased, why they’ve decreased, and how they compare with DigiByte. This gets slightly technical, but I hope I can explain this in such a way that it makes sense even for a non-technical reader. The views expressed here are my own and do not necessarily reflect that of the DigiByte Foundation.Transaction fees
They are an on-going issue we’ve seen for Bitcoin, and it’s an issue that DigiByte has been totally unaffected by.
At the time of writing (Feb 2018), there’s a total of 15,000 pending transactions: https://blockchain.info/unconfirmed-transactionsBitcoin mempool showing 15,000+ unconfirmed transactions, with 174BTC in fees waiting to be mined
This is significantly less than a couple of months ago, when it was sometimes over 200,000 pending Bitcoin transactions.
For those unfamiliar with how Bitcoin and DigiByte work, here’s a quick primer:
Every byte you send as part of a transaction, you pay a tiny fee to the miners who come along and verify your transaction (That you have sufficient funds etc) and for them to include it in the next block in the blockchain. An average transaction might be 300–1000 bytes, depending on a few things, but we’ll stick with around 300 bytes just for simplicity.
Now when you want to send a transaction, this goes into what’s called the “mempool”, think of it like a great big fish tank with your transaction swimming around in there waiting for a miner to take it and include it in the next block. The miners will naturally prioritize the fish with the most ‘meat’ on them, the miner fee, and include those where possible in the next block.
Now to clarify, one Satoshi is 0.00000001 of a DigiByte or Bitcoin, as DigiByte / Bitcoin is divisible to 8 decimal places, and the smallest amount is nicknamed a “Satoshi”.
On DigiByte, you’ll likely pay around 80–100 Satoshis per byte of data that your transaction...